• Why is this so hard to understand? (Part 4)

    I get that many of you hate government. You hate it so much that you want to blame everything on government.

    There are plenty of things that government does poorly. Or, at least you can make that argument, and find some support for it out there. For instance, many people believe that government does a terrible job at sparking innovation. I could imagine a debate there. Some think that government does a bad job at providing choice. That’s entirely defensible. Government run systems also allow less room for profit, which can drive out entrepreneurs. Also arguable.

    But what government systems do well is hold down costs. They use central planning. They use their large market power to negotiate for reduced reimbursement (see Part 2). They buy drugs cheaper. They eliminate profit and overhead.

    This is what government does well. It’s why every other country that has more government involvement than ours spends less than we do.

    So fee free to argue that government is stifling innovation, restricting freedom, or limiting choice. But if your goal is to reduce spending, then allow government to do what it does well, and do that – even at the cost of the other things. But don’t argue that reducing government involvement is the way to reduce spending.

    Part 1 is here. (When Medicare spending goes up, seniors’ premium costs go up.)

    Part 2 is here. (You can be for reducing Medicare spending, or you can be for increasing Medicare spending, but you can’t be for both.)

    Part 3 is here. (If you spend more on Medicare, someone has to pay for it.)

    @aaronecarroll

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